Whether it is sending money to a family member who lives in India or for business purposes, NRIs (Non-resident Indians) are no strangers to international money transfers. Online money transfer is a cost-effective and efficient mode of sending money from one country to another. However, if you are transferring money to Indian from abroad, you must be aware of the following common mistakes people make and avoid them.
- Not confirming the recipient’s details
One of the most common mistakes committed while transferring money to India from abroad is that they fail to recheck and confirm the recipient’s detail. It is a silly mistake, but it can cost you dearly, as the intended beneficiary may not receive the amount on time.
So, when you fill the money transfer form, make sure that you double-check the beneficiary’s details, including the name, account number, bank name, etc.
- Not knowing the exchange rate
When you remit to India from foreign, you must exchange the local currency to INR (Indian National Rupee). The exchange rate fluctuates every day, and the exchange rates offered by the money transfer services may differ. So, before you initiate the money transfer, it is paramount that you check the exchange rate provided by the service provider and compare it with others.
You must also know that the exchange rate may also fluctuate after you have already initiated the transfer. However, some money transfer services offer guaranteed exchange rates and do not change the transfer rate. It is advisable to choose such services as you would know the exact amount the beneficiary will receive.
- Not asking about the transfer duration
When you send money to India, you must ask the transfer service about the estimated time they take to transfer the amount to the beneficiary’s bank account from your current location. This transfer time plays an important role when you need to send money in an emergency.
So, when you choose a money transfer service, check the average duration of the transfer. Generally, the reputed services offer a same-day transfer.
- Not being aware of the charges involved
Several money transfer services providers that advertise about offering high exchange rates may have hidden fees, which ultimately increases the transaction cost. So, it is vital that you check the service provider’s website about the various charges involved and carefully read the term and conditions.
Typically, the reputed money transfer services and banks that offer online remittance facilities have a list of associated charges, and they inform the customer upfront about it to maintain transparency. So, choose a reputed bank to avoid paying a higher transaction cost.
- Not giving importance to the safety of the transactions.
Often, when people send money to India from abroad for the first time, they tend to select the transfer service that has the lowest transfer fee. But choosing the service provider based on the cost alone can backfire as such services offering cheap remittance are not secure.
So, in your bid to save a small amount, you risk losing the full remittance amount. Therefore, it is better to choose a reputed service provider that offers enhanced safety at a competitive price.
Online remittance – a smart and safe way to send money to India
So, by being aware of the above mistakes, you can remit money to India online safely and at an affordable cost.